Amazon DSP is a powerful tool for an advertiser looking to take their marketing efforts to the next level. Today’s blog is an introduction to Amazon DSP, with answers to some common questions about the platform.
Amazon DSP is what is known as a demand-side platform, which uses automated (or programmatic) buying to help advertisers reach new audiences. Both Amazon sellers and businesses that do not sell their products on Amazon are allowed to use it. Users can purchase audio, display, and video ads using Amazon DSP.
If you’re already familiar with another one of Amazon’s advertising options – Sponsored Display – you may be wondering how that differs from the Amazon DSP. Simply put, Sponsored Display is, as the name implies, a display advertising solution. While it does use machine learning to find and engage potential customers, it is still a self-service advertising product. Amazon DSP’s programmatic ad purchasing is just one of the things that sets it apart, along with the fact that it allows users to purchase other types of ads besides display, such as audio.
So, why Amazon DSP? There are a couple benefits that make it such a compelling platform for advertisers. For one thing, it’s able to leverage Amazon’s audiences and insights, as well as advertisers’ own audiences, using 3rd party integrators, pixels, and more. This helps users ensure that they’re reaching the most relevant audiences possible, and cuts down on inefficiency.
Amazon DSP is also unique in where it allows advertisers to access inventory, including from Amazon Publisher Services (APS) and third-party exchanges. Advertisers can build cross-device campaigns and reach Amazon shoppers, even when those shoppers are not on the Amazon website.
Amazon DSP has two categories of campaigns: link-in and link-out. If you sell products on Amazon.com, you use link-in campaigns, which direct customers to an Amazon landing page. Link-out campaigns are for advertisers who want to direct audiences to a landing page that is not on Amazon.com.
Imagine a webpage that has ad placements available. When a potential customer lands on that page, the auction begins. Only one advertiser can win a single placement, so how is that split-second decision made?
First, there is a bid request, which is sent to Amazon DSP the moment the page begins to load. Bid consideration occurs as all eligible ads (as in, those that haven’t been filtered out) are considered for the placement. These ads are ranked according to a variety of factors, and the highest-ranking ad wins the internal auction. (Note: there may be an additional auction to win for third-party inventory). Finally, the ad is shown to the potential customer!
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Ready to get started with Amazon DSP? Reach out to our agency! Relevance Advisors can help you learn the ropes and achieve your business goals today.
